Study On The Causes Of Failure Of RC Merger And Acquisition LS

Nowadays,with the continuous improvement of capital market in China,Merger and Acquisition has become the first choice for enterprises to expand their scale.Cross industry Merger and Acquisition can make enterprises develop in a diversified way,so it becomes an important way of enterprise development.Cross industry Merger and Acquisition can not only promote the rapid entry of enterprises into new industries and diversified development,but also expand the influence of enterprises.Excellent acquirers can not only reduce costs,but also improve efficiency by sending management to the target enterprise and improving the governance structure of the target enterprise through resource sharing.However,as an investment activity,the risk of Merger and Acquisition itself is relatively high,and cross industry Merger and Acquisition is a combination of two enterprises in totally different fields,which will face greater risks.If the target enterprise is still in financial difficulties,then the acquirer will bear greater Merger and Acquisition risks.RC is an enterprise specializing in the comprehensive development of residential and commercial real estate.LS group is a company integrating film and television platforms,terminals and application industries.However,LS’s rapid expansion has led to the rupture of its capital chain and financial difficulties.LS’s financial difficulties have caused large-scale chaos.Many advertising companies directly collect debts in front of the door of LS The large-scale chaos has brought huge pressure to social stability.As a "takeover man",RC has made the move to acquire LS and acquire LS’s related assets and businesses,which not only promotes its diversified development,but also helps LS improve its financial situation.From a macro perspective,RC’s merger and acquisition of LS is not a complete failure,but RC’s merger and acquisition of LS is not a complete failure Yu’s investment almost fully accrued the loss,so it was a failure from the financial point of view.Therefore,this paper selects two companies,RC and LS,as the objects to analyze the case of RC’s merger and acquisition of LS.From the financial point of view,RC,as the acquirer,chooses LS,an enterprise in financial difficulties,as the target enterprise,to acquire it,but the final reason is the failure,and then summarizes the reasons.Finally,based on the summary,it gives RC the future some suggestions on the acquisition activities of the company and other related enterprises.I hope that the future acquisitions among industries can be rational and successful.